System and method for facilitating a purchase transaction using a customer device beacon

ABSTRACT

In a purchase transaction between a merchant and a customer, a merchant device sends transaction information to a payment gateway and sends a beacon signal containing a transaction identifier to a customer mobile device. The customer mobile device sends the transaction identifier and payment information corresponding to a customer payment account to the payment gateway. The payment gateway applies the transaction identifier to access the transaction information received from the merchant device and sends purchase information based on the transaction information to the customer mobile device. The customer mobile device displays the purchase information to the customer, obtains an indication of customer assent to pay for the item and sends a confirmation of customer assent to the payment gateway. Upon receiving the confirmation of customer assent from the customer mobile device, the payment gateway Processes the purchase transaction based on the payment account information.

FIELD OF THE INVENTION

The present invention relates generally to electronic paymenttransactions and, more particularly, to the utilization of mobiledevices to perform and facilitate such transactions.

BACKGROUND

As mobile devices such as Smartphones become commonplace, they areincreasingly equipped with technologies that allow them to perform awide variety of functions. Such functions include purchase transactionsin which customers utilize their mobile devices to facilitate paymentfor items at the point of sale. One approach utilizes Smartphonesequipped with Near Field Communication (NFC) to enable customers to paymerchants without requiring the presentation of to conventional physicalpayment card such as a credit card. Having previously provided creditcard information to his Smartphone, the customer pays the merchant bytapping or waving the phone closely over an NFC reader provided by themerchant.

The NFC approach described above has limitations, however. For onething, the NFC reader is only able to obtain information from the phoneif it is positioned in very close proximity, that is, within a fewcentimeters of the reader. As such, payment by NFC typically requiresthe customer to consciously perform a physical action to bring the phonesufficiently close to the reader, such as by tapping or waving the phoneas described above.

Furthermore, although the NFC approach allows the customer to provideinformation to the merchant via the reader, no means are typicallyavailable for the merchant to provide information directly to thecustomer phone. As such, the customer has no way to ensure that hisinformation will be associated with the present transaction unless hepresents his credit card to the merchant or taps or waves a phone overthe reader, as described above. Thus, there is a need for a mobiledevice based purchase approach that overcomes these limitations,

SUMMARY OF THE INVENTION

The present invention provides, among other advantages that will beapparent to one of ordinary skill in the art from the descriptionherein, a means of utilizing a customer's mobile device to perform apurchase transaction without requiring the customer to present aconventional credit card or to tap or wave the mobile device over areader. Additionally, the present invention improves the effectivenessand efficiency of the transaction and/or simplifies the participation ofthe customer and the merchant by providing a means for immediate anddirect communication of relevant data from the merchant to the customer.This allows, for example, the merchant to provide to the customer ameans to uniquely identify the transaction to a payment gateway whichcan then process the payment.

The present invention may include, but is not necessarily limited to,the features and functions discussed in the following generaldescription. When a customer approaches a merchant with one or moreitems for purchase, a merchant device obtains item informationassociated with the items. The merchant device also obtains a beaconpayment selection indicating that a beacon is to be utilized inperforming the transaction. Correspondingly, a merchant beacon transmitsa beacon signal which contains a transaction identifier uniquelyassociated with the transaction. The merchant device also sends, over anetwork to a payment gateway, transaction information based on the iteminformation and a beacon payment indicator based on the beacon paymentselection.

Upon receiving the beacon signal containing the transaction identifier,the customer device sends, over a customer network to the paymentgateway, the transaction identifier and payment account informationcorresponding to a payment account of the customer. The payment gatewayuses the transaction identifier to identify the present transaction andaccess the transaction information that was provided by the merchantdevice, and then sends purchase information based on the transactioninformation to the customer device. The customer device displays thepurchase information to the customer and obtains from the customer anindication of assent to pay for the items.

Upon obtaining the indication of assent from the customer to pay for theitems, the customer device sends to the payment. gateway a confirmationof assent based on the indication obtained. Upon obtaining theconfirmation, the payment gateway processes the purchase transactionbased on the payment account information and returns a transactionresult to the merchant device and the customer device.

By providing, from the merchant device, a beacon signal which a customerdevice can receive and use to uniquely identify the transaction to thepayment gateway, the present invention makes it possible for thecustomer to pay for a purchase without having to perform a physicalaction to present the device to a merchant reader. As a result, thepresent invention provides numerous advantages over reader-basedtransactions such as NFC, and overcomes numerous disadvantages thatwould result from such reader-based transactions.

Compared to a reader-based approach, the present invention simplifiesthe purchase process and reduces the time required to make a purchase.For one thing, the invention eliminates the delay that results fromhaving to present the device to a reader. The invention may alsoeliminate other delays associated with the process of presenting thedevice to the reader, such as customer uncertainty about when to presentthe device. Even in circumstances that would otherwise be ideal for areader-based transaction, the invention reduces the time required tomake a purchase to an extent that, when multiplied by numerouscustomers, can have a significant impact on logistics and efficiency.

The present invention overcomes even more significant disadvantages of areader-based transaction in circumstances where the customer would faceany difficulty in presenting his device to the reader. Such difficultymay occur, for example, when the customer is not located within easyreach of the reader, is physically obstructed from the reader, or hasdisabilities that make it difficult or impossible to present the deviceto the reader. In such cases, a reader-based approach may significantlydelay the purchase process, render it unpleasant to the customer as wellas the merchant and other customers, entirely prevent the customer fromusing his device to make a purchase or, in circumstances wherealternative means are not available, even prevent the customer frommaking a purchase altogether.

Furthermore, when compared to a reader-based transaction, the presentinvention significantly reduces the risk of a customer acquiringillnesses and other afflictions as a result of having to place his orher hands on or in close proximity to a reader that numerous othercustomers have placed their hands on or in close proximity to. Theinvention may also reduce the risk of illnesses being acquired bycustomers as a result of potentially having to come in closer proximityto a merchant employee in the process of presenting the device to thereader.

Additionally, when compared to a reader-based approach, the presentinvention reduces the risk of damage to the customer device (such asfrom dropping the device) that may occur in the process of presenting itto the reader. Such a risk can be substantial when the customer is notpositioned ideally with respect to the reader so as to require awkwardaction such as reaching over a counter, across a cart, through adrive-through window and so forth. The invention may also reduce therisk of damage to clothing or soiling of clothing or skin as a result oftouching the reader or associated equipment or reaching across thecounter or other objects in order to present the device to the reader.Even under more fortunate circumstances, the present invention stillreduces wear and tear on the customer device by eliminating the need topresent it to a reader.

Still additional advantages may be realized in embodiments and/orcircumstances where a purchase would not otherwise require the customerto directly contact the device. For example, while a customer's assentto pay or selection of a payment instrument might be accomplished byholding the device to read a display and/or provide input to atouchscreen, this information might instead be obtained another way,such as by a vocal communication by the customer to the customer phoneor by a default presumption by the customer device under predefinedcircumstances. In such a case, the invention provides the customer withthe ability to pay fur the purchase without having to even retrieve thedevice from his or her pocket, belt clip, purse, backpack, or otherlocation on or near the person of the customer. In addition to savingthe time required to retrieve the device, this provides advantages suchas allowing the customer to keep a hand free for other purposes,avoiding additional risk to the device, reducing wear and tear, andavoiding exposure to potentially harmful conditions such as rain, dust,debris and so forth.

Yet additional advantages may be realized in a mobile merchantenvironment. For example, a merchant who provides services or functionsthat can be performed externally to all or part of a customer home oroffice can obtain payment for such services without having to enter thehome or office. Such services or functions may include deliveries,exterior repairs, landscaping, gardening, pool service, door to doorsales, bill collection, charity solicitations, fundraising and so forth.This provides safety and peace of mind to the customer, who may remainbehind the safety of locked doors. It also provides safety and peace ofmind to the merchant, who may remain within the relative safety of morepublic view, as well as the business advantages associated withproviding safety and peace of mind to customers.

BRIEF DESCRIPTION OF EXEMPLARY DRAWINGS

A more complete understanding of the present invention may be derived byreferring to the detailed description and claims when considered inconnection with the Figures, wherein like reference numbers refer tosimilar elements throughout the Figures.

FIG. 1 is a system diagram showing the main components of a version of apurchase transaction system in which the merchant employs a point ofsale terminal in accordance with one embodiment of the invention;

FIG. 2 is a system diagram showing the main components of a version of apurchase transaction system in which the merchant employs a mobilecommunication device having a point of sale application in accordancewith another embodiment of the invention;

FIG. 3 is a flowchart showing the main steps performed by the merchantdevice in accordance with an embodiment of the invention;

FIG. 4 is a flowchart showing the main steps performed by the customermobile device in accordance with an embodiment of the invention; and

FIG. 5 is a flowchart showing the main steps performed by a paymentgateway in accordance with an embodiment of the invention.

It should be appreciated by one of ordinary skill in the art that, whilethe present invention is described with reference to the figuresdescribed above, the invention may include a variety of embodimentsconsistent with the description herein. It should also be understoodthat, where consistent with the description, there may be additionalcomponents not shown in the system diagrams or additional steps notshown in the flowcharts, and that such components and steps may bearranged or ordered in different ways.

DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS

A purchase transaction system is described below which facilitates apurchase transaction between a merchant and a customer. As used hereinand where appropriate in the context of the description, the term“merchant” may refer to a business, a particular store location ormobile unit of such a business, a specific employee or agent of such abusiness, and so forth. Similarly, as used herein and appropriate to thecontext of the description, the term “customer” may refer to anindividual who possesses, interacts with and/or owns the customerdevice, an individual who communicates with the merchant and/or takespossession of the item or items, or an individual, group or entity whomaintains a payment account from which funds are drawn to pay for thepurchase. The terms “merchant” and “customer” may also apply to privateparties engaged in private transactions such as a person-to-persontransaction in which one individual is a merchant who provides an itemor items to another individual who is the customer and who might pay,for example, with a virtual currency such as Bitcoin.

Also as used herein, a “purchase”, “purchase transaction” or“transaction” may refer to, as appropriate, any financial transaction inwhich one party provides payment to another party, including a sale,lease, charitable contribution, tip, reimbursement, loan, repayment,settlement, judgment and so forth. In similar fashion, an “item” or“items” may refer to anything for which payment is provided, such as oneor more products, services, donations, gratuities, rights, interests andso forth. The appropriate interpretation(s) of the terms “purchase”,“purchase transaction”, “merchant”, “customer”, “item”, “items” andother terms used herein will be comprehended by one of ordinary skill inthe art in the context of their use in the description herein, andshould be understood to potentially include all potentialinterpretations reasonably within the scope of the invention,

The purchase transaction system described herein employs “beacon”technology to advantageously facilitate a purchase transaction between amerchant and a customer using a mobile device equipped with suchtechnology. As used herein, beacon technology refers to Bluetooth lowenergy (also known as Bluetooth LE, BLE, or Bluetooth Smart) technology,or technology based thereon. The term “beacon” as used herein may refergenerally to beacon technology or may refer specifically to a devicewhich uses beacon technology, such as a beacon transceiver thattransmits a beacon signal to, and/or receives a beacon signal from,other devices that use beacon technology. An example of beacontechnology is iBeacon™, provided by or associated with Apple, Inc. Abeacon that uses iBeacon technology may be provided by Apple or byanother company to be generally compatible with iBeacon technology, andmay in some instances be referred to as an iBeacon. An example of aniBeacon-compatible beacon is the Estimote Beacon, which is provided byEstimote, Inc. and certified by Apple.

FIG. 1 shows an embodiment of a purchase transaction system in which themerchant utilizes an essentially stationary point of sale terminal. Asshown, a point of sale (POS) terminal 110 utilizes a static merchantbeacon transceiver 112 to transmit beacon signals to beacon equippeddevices within a specified range. The POS terminal 110 is, for example,a conventional stationary POS terminal, additionally configured asappropriate to perform the functions described herein to facilitate abeacon-based transaction. The POS terminal 110 is essentially stationaryin that it remains generally in a same position during most of the timeit is operational, such as a POS terminal maintained at a locationdesignated for check-out.

The static merchant beacon transceiver 112 is a beacon transceiver asdescribed above, provided to operate in conjunction with the POSterminal 110. The static merchant beacon transceiver 112 is “static” inthe sense that it is fixed in a generally stationary positioncorresponding to the position of the POS terminal 110. The staticmerchant beacon transceiver may be provided as part of the POS terminal110, attached or affixed to the POS terminal 110, or separate from butproximate to the POS terminal 110, such as within 1 meter or closer. Thestatic merchant beacon transceiver 112 could also be maintained on theperson of a merchant who is located very close to the POS terminal 110during a relevant portion of the purchase transaction or attached to ora component of a related device.

The POS terminal 110 communicates via a merchant network 120 with apayment gateway 130. The merchant network 120 is, for example, aconventional point of sale network established to connect one or morepoint of sale terminals over the internet to a server such as a paymentgateway, and may include any local networks as necessary to performfunctions appropriate for the purpose of conveying information betweenthe POS terminal 110 and payment gateway 130. The payment gateway 130contains means for handling payment transactions, wallet applicationserver functions and so forth in an essentially conventional manner, butis additionally configured as appropriate to perform the functionsdescribed herein that facilitate beacon-based transactions.

The payment gateway 130 is also accessible via a customer network 140 bya customer mobile device 150 maintained by the customer. The customernetwork 140 includes, for example, an internet connection between thecustomer mobile device 150 and the payment gateway 130, as may befacilitated by a cellular network and/or other means, and may includeany local networks as necessary to perform functions appropriate for thepurpose of conveying information between the customer mobile device 150and the payment gateway 130.

The customer mobile device 150 includes a customer beacon transceiver152 and a wallet application 155. The customer mobile device 150 is, forexample, a mobile communication device such as a Smartphone, a tabletcomputer or other mobile computing device capable of being equipped witha beacon transceiver and a wallet application as described herein. Oneexample of such a customer mobile device 150 would be an Apple iPhonerunning a version of the Apple iOS operating system and equipped withiBeacon. The customer mobile device 150 could also be a Google Androidoperating system based phone provided by any of a number of differentmakers such as Samsung, HTC, LG and Motorola and equipped with a beaconas described above.

The wallet application 155 is a software application at least partlyresident on and executable by the customer mobile device 150 whichallows the customer to initiate and complete payments using previouslystored or newly entered payment account information, and may containadditional capabilities such as the provision and management ofreceipts, coupons, discount offers, loyalty credits, and so forth. Thewallet application 155 is, for example, a conventional walletapplication that is additionally configured to facilitate beacon-basedtransactions as described herein.

The payment gateway 130 communicates via an external network 160 to anynumber of payment processors 170. Each payment processor 170 correspondsto an institution, or a component thereof, in which the customer mayhold an account that can be accessed to make payments, and/or aninstitution in which the merchant may hold an account which is used tocollect such payments. As used herein, a payment processor 170 may referto a conventional credit card payment processor or payment network, adigital currency payment processor or any other entity appropriate forprocessing payments as described herein.

FIG. 2 shows an embodiment of a purchase transaction system in which themerchant employs a mobile device, rather than a stationary point of saleterminal as shown in FIG. 1, to perform point of sale functions. Thisallows the merchant to perform point of sale transactions in a mobileenvironment. For example, the merchant may be a service technician whotravels to customer locations to provide services and obtain payment atsuch locations. As another example, purchase transactions could beperformed by a retail sales associate who is enabled to move aboutwithin the confines of a merchant store or location.

As shown in FIG. 2, a merchant mobile device 210 includes a mobilemerchant beacon transceiver 212 and a POS application 215. The merchantmobile device 210 is, for example, a mobile communication device such asa Smartphone, a tablet computer or other mobile computing device capableof being equipped with a beacon transceiver and a POS application asdescribed herein. For example, merchant mobile device 210 could be aniBeacon-equipped iOS-based iPhone or could be a beacon-equippedAndroid-based phone provided by Samsung, HTC, LG or Motorola.Alternatively, where not equipped with a built-in beacon, the merchantmobile device 210 could be configured to operate with a mobile merchantbeacon transceiver 212 that is affixed to the merchant mobile device210, or otherwise maintained in close proximity to the merchant mobiledevice even when both are in motion.

The POS application 215 allows the merchant mobile device 210 to performfunctions similar to the POS terminal 110, but in a mobile environmentas described above, so as to potentially provide point of saletransactions in whatever location the merchant is in at the time of thetransaction. The POS application 215 is, for example, a conventional POSsoftware application which allows a mobile device to perform functionssimilar to a POS terminal, additionally configured to facilitatebeacon-based transactions as described herein and least partiallyresident on and executable by the merchant mobile device 210.

In an alternative embodiment where the merchant mobile device 210 ismaintained in very close proximity to a POS terminal, the merchantmobile device 210 could be configured so as provide the beacon componentof the beacon-based transaction while still utilizing the POS terminalto provide the POS functions. In such an embodiment, the mobile merchantbeacon transceiver 212 would essentially perform the functions describedabove with reference to the static merchant beacon transceiver 112.

Other aspects of the financial transaction system are essentially thesame as described above with reference to FIG. 1 and, as such, the othercomponents are shown with the same reference numerals. It will beunderstood, however, that such components may operate differently atleast as necessary to operate in conjunction with a mobile merchantdevice. For example, the merchant network 120 will, in such case, beappropriately configured to interact with a mobile device.

FIGS. 3 through 5 are flowcharts of the steps performed by the purchasetransaction system overall, separated by the portion of the system(merchant device, customer device, payment gateway) that performs them.One of ordinary skill in the art will readily appreciate that, whereappropriate and consistent with the general description herein, stepsmay be performed in a different order than shown and described.

FIG. 3 is a flowchart showing the main steps performed by a merchantdevice in accordance with an embodiment of the invention. The merchantdevice is, for example, the combination of POS terminal 110 and staticmerchant beacon transceiver 112 or is, for example, the merchant mobiledevice 210.

In step 310, the merchant device obtains item information relating toone or more items identified to be purchased by the customer. This maybe initiated upon the merchant scanning item identifying information viaa barcode scanner such as a Universal Product Code (UPC) scannerconnected to the merchant device, via a Quick Response (QR) code reader,or other means. Alternatively, the merchant may enter the iteminformation into the merchant device manually, or may simply enter aprice. The merchant device may be equipped with any number of securitymeasures controlling user access to and interaction with the device,including password, personal identification number (PIN) or variousbiometric applications.

In step 320, the merchant device obtains from the merchant a beaconpayment selection designating that a merchant beacon (such as staticmerchant beacon transceiver 112 or mobile merchant beacon transceiver212) will be utilized in performing the transaction and sends to thepayment gateway a beacon payment indicator based on the beacon paymentselection. As will be explained in more detail below, this effectuatesan indication to the purchase transaction system that the presenttransaction will be a beacon based transaction. The beacon paymentselection may be, for example, a selection by the merchant among optionsprovided via a user interface of the POS terminal 110 or of the merchantmobile device 210. Alternatively, the beacon payment selection may begenerated automatically upon receiving an acknowledgement from thecustomer device that a beacon signal sent by the merchant device (as isdescribed below with reference to step 350) has been received by thecustomer device.

In other possible embodiments, the merchant device may be configuredand/or employed to allow the customer rather than the merchant toperform some or all the functions associated with identifying the itemor items to the purchase transaction system and/or indicating to thepurchase transaction system that the present transaction may be abeacon-based transaction. In such a system, the merchant may, forexample, provide the customer with access to the merchant device, suchas by handing the merchant mobile device 210 to the customer.

In a different embodiment, the functions of the merchant device could beperformed by a shopping device such as a beacon-equipped personalcomputer, laptop, tablet computer or the like which provides means forperforming online purchases over the internet in an essentiallyconventional way but is further configured to send, to the customerdevice, a beacon signal that contains a transaction identifier asdescribed above. The shopping device may be a customer shopping deviceoperated by the customer who pays for the transaction, or alternativelythe shopping device may be a third party shopping device operated by ashopper other than the customer who pays for the transaction. Theshopper may be, for example, a spouse, friend or relative of thecustomer. Further still, the shopping device may be a mobile device suchas a beacon-equipped Smartphone, thus allowing for the customer to payfor online purchases of the shopper regardless of location as long asthe shopper and the customer are close enough that the customer deviceis in range of the shopping device.

In another embodiment, the merchant device could be a self-checkoutdevice having a means into which a customer can scan his items forpurchase as well as a user interface into which the customer may enterinformation relevant to the purchase. POS terminal 110 could be, forexample, all or a portion of a conventional self-checkout system,configured as appropriate to perform the functions described herein. Theuser interface could also be configured to allow the customer to make abeacon payment selection indicating to the purchase transaction systemthat the transaction will be a beacon-based transaction.

In yet another embodiment, the merchant device could be a vendingmachine that automatically vends items without typically requiring theimmediate presence of a merchant attendant or employee. The POS terminal110 could be, for example, implemented as a conventional vendingmachine, additionally configured to perform the functions describedherein. In addition to providing conventional means for productselection, such a vending machine could be configured to obtain a beaconpayment selection from the customer indicating the vend will be abeacon-based transaction. Particularly as vending machines often involvequick purchases of low cost items, the invention may provide especiallyvaluable advantages when combined with other functions that allow acustomer to perform a purchase without directly accessing the device,such as the application of a rule that presumes the customer's assent topay when a purchase amount is below an appropriate threshold, especiallywhen weather makes it difficult to retrieve either a conventional walletor a customer device such as a phone, when change is not readilyavailable, and so forth.

In step 330, the merchant device utilizes the item information and thebeacon payment selection provided to create an authorization requestwhich includes transaction information and a beacon payment indicator.The transaction information includes, for example, purchase amount,terminal identification number (TID), merchant identification number(MID) and so forth. The beacon payment indicator is, for example, a flagthat indicates that the merchant beacon is utilized in performing thetransaction, which informs the payment gateway to expect informationprovided therein to be received by the customer device and furtherprovided to the payment gateway. The transaction information and thebeacon payment indicator may be entered, for example, into designatedand/or newly determined fields of an authorization request type ISO 8583message, such fields to be recognized by the payment gateway as holdingthe transaction information and beacon payment indicator.

In step 340, the merchant device sends the authorization request withthe transaction information and the beacon payment indicator to thepayment gateway. For example, the POS terminal 110 or the merchantmobile device 210 sends the authorization request over the merchantnetwork 120 to the payment gateway 130.

In step 350, the merchant device sends a beacon signal containing atransaction identifier that uniquely identifies the present transaction.For example, the POS terminal 110 invokes the static merchant beacontransceiver 112 to send the beacon signal, or the merchant mobile device210 invokes the mobile merchant beacon transceiver 212 to send thebeacon signal. In various embodiments, the beacon signal could beenabled by action of the merchant, such as upon an indication (spoken orotherwise) from the customer to the merchant that a beacon may be used,or enabled automatically by the merchant device, such as upon the beaconpayment selection by the merchant. Alternatively, the merchant devicecould be configured to send the beacon signal when item informationbegins to be obtained, such as upon the commencement of scanning ofitems.

In yet other embodiments or variations, the merchant device may send abeacon signal continuously and/or periodically which identifies the mostcurrent transaction, such that the customer device will receive thebeacon signal immediately or soon after coming within range of themerchant beacon. In such case, the merchant device may not send thebeacon payment indicator to the payment gateway as described above untilreceiving beacon signal from the customer device containing anacknowledgement that the merchant beacon signal was received and/orother indication(s) that a beacon based transaction is acceptable.

As will be understood by one of ordinary skill in the art, a beacon isdesigned to send a concise collection of data in a format that will berecognized by the receiving device. An iBeacon compatible device, forexample, has a 16 byte UUID field that contains a Universally UniqueIdentifier (UUID) value, a 2 byte Major field that holds a selectablemajor value, and a 2 byte Minor field that holds a selectable minorvalue. In such a configuration, the transaction identifier could be anyvalue or set of values that is represented within one or a combinationof these fields. The transaction identifier could be or could include,for example, a MID (in same or different format as above), a TID (insame or different format as above) where the merchant device is a POSterminal 110, an appropriate device identification number where themerchant device is a merchant mobile device 210, a purchase amount,virtual currency information, a Bitcoin invoice number, or any otherinformation, or combination of such information, that is sufficient touniquely identify the transaction.

The beacon signal described above and/or other beacon signals sent bythe merchant device, may also include additional information asappropriate, such as other transaction information, locationinformation, a code or other indication of eligibility for a discountapplicable to the present purchase or a potential future purchase, orany other application specific data useful in performing thetransaction, Information provided within any such beacon signal may becontained within a single beacon signal or may be spread over multiplebeacon signals.

As performance of the transaction continues with actions performed bythe payment gateway and the customer device, discussion will continuenow with reference to FIGS. 4 and 5 before returning to FIG. 3, FIG. 4is a flowchart showing the main steps performed by a customer device inaccordance with an embodiment of the invention. The customer device is,for example, the customer mobile device 150.

In step 410, the customer device receives, from the merchant device, thebeacon signal which contains the transaction identifier that uniquelyidentifies the present transaction. For example, the customer beacontransceiver 152 of the customer mobile device 150 receives the beaconsignal from either the static merchant beacon transceiver 112 (where themerchant device is a POS terminal 110) or the mobile merchant beacontransceiver 212 (where the merchant device is a merchant mobile device210.)

The merchant device may be configured such that the beacon transceiverwill transmit a beacon signal to devices only within a reasonably closeproximity range, such as one or two meters, so that the customer devicewill receive or acknowledge the signal due to the customer's proximityto the point of sale. The merchant device may also be configured suchthat the beacon transceiver will transmit the beacon signal at a limitedsignal strength level that is selected taking into account not onlydistance but also the impact on accuracy of potential obstructions tothe signal. In this way the range may be selected by the merchant so asto best represent the actual layout and/or circumstances of the point ofsale. In such cases, the distance and/or signal strength may beinitially set to a default value that will be used unless changed by themerchant.

In addition to this, the customer device may be configured to onlyacknowledge beacon signals from within a certain proximity range, suchas one or two meters, such that it will only receive or acknowledgebeacon signals from a merchant device it is sufficiently close to at thetime. The customer device may also be configured so as to recognize onlybeacon signals that surpass a designated level of signal strength thatwill take into account both distance and the impact on accuracy ofpotential obstructions to the signal. In this way the customer devicemay be more likely to recognize the merchant beacon when the customer isthe most current customer of the merchant.

One of ordinary skill in the art will recognize that selection ofproximity range and signal strength will depend on the circumstances athand, in an embodiment where the POS terminal 110 is a vending machineas described above, a closer range such as 0.5 meters may be selected,as it can be presumed the customer is that close upon interaction withthe machine such as by making an item selection by pressing a button onthe vending machine or via a user interface resident on the vendingmachine, or by making a beacon payment selection (to indicate the vendwill be a beacon-based transaction) in similar fashion.

In addition to configuring ranges as described above so that themerchant beacon signal will be received by the desired customer device,a number of measures may be taken as appropriate to ensure that thecorrect transaction is processed for the correct customer. The customerdevice may be configured, for example, to send to the payment gateway anindication of the time which the merchant beacon signal was firstreceived from the customer device, such that the payment gateway willpresume, if more than one customer device has sent a same transactionidentifier, the customer device to have received the beacon signal firstcorresponds to the customer for the identified transaction.Alternatively or additionally, the payment gateway may obtaininformation from the customer device that indicates its proximity to themerchant device at one or more points in the transaction and comparethis information to that which has been provided by other customerdevices so as to determine the correct customer for a given transaction.One of ordinary skill in the art will recognize more sophisticated rulesbased on combinations of proximity, time, location, transaction statusand so forth, as appropriate to the circumstances at hand.

In step 420, the customer device launches a wallet software applicationresident on the customer mobile device. The wallet application may belaunched by operation of the customer or it may be launchedautomatically by the customer device in response to the merchant beacon.For example, the customer mobile device 150 invokes the walletapplication 155 upon the customer beacon transceiver 152 receiving abeacon signal from the static merchant beacon transceiver 112 (where themerchant device is a POS terminal 110) or from the mobile merchantbeacon transceiver 212 (where the merchant device is a merchant mobiledevice 210.) In conjunction with the wallet application or otherwise,the customer device may be equipped with any number of security measurescontrolling user access to and interaction with the device, includingpassword, personal identification number (PIN) or various biometricapplications.

In step 430, the customer device obtains a payment type selection fromthe customer via the wallet application. For example, the walletapplication may display a list of available payment options, eachcorresponding to a payment account maintained by the customer. Thesecould include one or more credit card accounts, debit card accounts,checking accounts, or any other means of accessing funds that can betransferred to the merchant in payment for the purchase, potentiallyincluding digital currency, virtual currency, cryptocurrency and soforth. Examples include Visa, American Express, PayPal, Bitcoin, and soforth. In an alternative implementation, the wallet application may beconfigured so as to automatically select a payment option based on adefault option previously designated by the customer, based on adetermination made h the wallet application depending on a potentialvariety of factors such as available balances, user history and soforth.

In step 440, the customer device sends a purchase request to the paymentgateway. For example, the customer mobile device 150 sends the purchaserequest to the payment gateway 130 via the customer network 140. Thepurchase request includes payment information representing the paymentaccount selected by the customer to pay for the purchase. The purchaserequest further includes the transaction identifier, received from themerchant device, which uniquely identifies the present transaction. Itshould be understood that the transaction identifier may be in adifferent form when provided by the customer device to the paymentgateway than it was when sent by the merchant device to the customerdevice. The transaction identifier may be, for example, formatted orarranged differently and/or in a different form that is based on orderived from the form it was in when obtained from the merchant device,but such that it will still be ascertainable by the payment gateway touniquely identify the present transaction. The transaction identifiermay also be communicated to the payment gateway separately from thepayment account information, such as separately from a purchase requestthat contains the account information, and thereafter be associated withthe payment gateway in an appropriate fashion, such as being identifiedas part of a same communication or by cross reference or commonreference.

In additional aspects of the invention, the customer device may send tothe payment gateway additional information, whether provided togetherwith the transaction identifier and/or together with or as part of thepayment account information or separately and thereafter associated withsuch information by appropriate means. Such additional information mayinclude a customer identifier that uniquely identifies the customer tothe payment gateway, such as a customer wallet account number thatcorresponds to the customer's wallet account. The payment gateway mayutilize the customer identifier to identify payment accounts of thecustomer and obtain corresponding payment account information stored bythe payment gateway rather than the customer device, such that sensitivepayment account information does not have to be transmitted by thecustomer device. Furthermore, such a customer identifier may be utilizedby the payment gateway to determine whether the customer is entitled toany discounts as may be associated with membership in a loyalty programmaintained by or otherwise associated with the merchant, and/or thecustomer's purchase history, behavioral history and so forth. In suchcase, the payment gateway may apply the discount to adjust the purchaseamount before processing the payment, may communicate to the customerdevice that the discount was applied, and so forth.

FIG. 5 is a flowchart showing the main steps performed by the paymentgateway in accordance with an embodiment of the invention. The paymentgateway is, for example, the payment gateway 130 shown in FIGS. 1 and 2.It will be understood that the payment gateway may be protected by anynumber of security measures which prevent access to the system fromoutside parties including firewall protection and so forth, and whichfurther control user access to and interaction with devices therein,including password, personal identification number (PIN) or variousbiometric applications.

In step 510, the payment gateway receives the authorization requestprovided by the merchant device in step 340. In step 520, the paymentgateway determines whether the beacon payment indicator provided by themerchant device indicates that the merchant beacon is being utilized inperforming the present purchase transaction. If not, the payment gatewayhandles the transaction by a different process (not shown) such as aconventional process for handling a transaction in which the customer'spayment information would have been provided to the merchant, such as bypresentation of a credit card or tapping of a phone to a reader, andthen obtained by from the merchant device via the merchant network 120,if the payment gateway determines in step 520 that the beacon paymentindicator indicates the merchant beacon is being utilized in performingthe present purchase transaction, processing proceeds to steps 530through 590 Where the transaction will be handled accordingly.

In step 530, the payment gateway uses the transaction identifierobtained from the customer device to retrieve the transactioninformation supplied by the merchant device in the authorizationrequest. It will be appreciated that this function may be performed indifferent ways depending on how the relevant information is represented,formatted, stored, accessed and retrieved in the implementation at hand.Where the transaction identifier includes a TID, for example, thepayment gateway may access a predefined number of the most recentauthorization requests, identify the most recently receivedauthorization request containing the same TID, and retrieve thetransaction information therein and identify information from withinthat transaction information sufficient to define and describe thepurchase to the customer.

In step 540, the payment gateway sends purchase information based on thetransaction information to the customer device. The purchase informationmay the same as, or a portion of, the transaction information (or anauthorization request containing the transaction information) or it maybe derived from such transaction information or authorization request asappropriate to the implementation at hand. For example, the paymentgateway 130 sends, via the customer network 140, a purchase amount alongwith item information extracted from or determined based on thetransaction information obtained in the authorization request.

Returning to FIG. 4, the customer device in step 450 receives thepurchase information and, in step 460, displays the purchase informationto the customer. For example, the customer mobile device 150 may displayvia the wallet application 155 a purchase amount along with relevantitem information that identifies the item or items being purchased,allowing the customer to review the relevant information and ensure heor she wishes to complete the purchase. Additionally or alternatively,the customer mobile device may provide the purchase information to thecustomer by other means, such as by an automated voice communication.

In step 470, the customer device obtains from the customer an indicationof assent to pay for the item or items. This is obtained, for example,by displaying a purchase amount and obtaining a selection from thecustomer, such as by touching a touchscreen on the customer device, of aprovided “OK to Pay” button or prompt via the wallet application 155.Additionally or alternatively, the customer device may obtain theselection from the customer by other means, such as by vocalcommunication from the customer to the device. In such a case, whereappropriate and so configured, it becomes possible for the customer topay for a purchase without having to physically retrieve the device fromhis or her pocket, belt clip, purse, backpack or otherwise. The customerdevice may be further configured to apply security measures to theselection, such as by performing a fingerprint scan when the user makesa selection through the touchscreen or by using voice recognition of avocal selection or command to identify the customer. In step 480, thecustomer device sends to the payment gateway a confirmation of thecustomer's assent to pay based on the indication obtained from thecustomer.

In another embodiment of the invention, the wallet application may beconfigured to automatically assume the customer's assent to pay undercertain circumstances, such as when the purchase amount does not surpassa predetermined threshold and/or is associated with a merchant and/ortransaction type (as determined based on the purchase information and/orthe transaction identifier and/or additional information maintained bythe wallet application) that has been previously designated by thecustomer and/or determined by the wallet application to be trustworthyand/or require no customer assent for any other reasons. When combinedwith alternative variations such a described above wherein the walletapplication is configured so as to automatically select a payment optionbased on a default option previously designated by the customer orotherwise, a transaction becomes possible which essentially requires nocustomer interaction if desired.

Returning to FIG. 5, upon receiving the confirmation of customer assentfrom the customer device in step 550, the payment gateway processes thetransaction in step 560. The payment gateway processes the transactionby providing at least a portion of the transaction information obtainedfrom the merchant (or information based on such transaction information)and at least a portion of the payment information obtained from thecustomer for information based on such payment information) to a paymentprocessor corresponding to the payment account selected by the customer,and then receiving a result from the payment processor indicatingwhether the payment was successfully completed. It should be understoodthat the transaction information and payment information provided maybe, as appropriate, formatted or arranged differently at differentpoints in the transaction process, but will include or be derived fromthe data previously referenced by these terms.

As one example, the payment gateway 130 obtains a purchase amount fromthe authorization request and a payment account number from the purchaserequest and provides the information in appropriate form via theexternal network 160 to the payment processor 170 that corresponds tothe owner of the payment account identified by the customer, andreceives a response back from the payment processor 170 via the externalnetwork 160. If the transaction is successful (the customer paymentaccount is valid, possesses sufficient funds, and so forth) the paymentaccount of the customer is debited by the appropriate amount. Similarly,a financial account of the merchant is credited in the same amount bysimilar and/or conventional means.

The payment gateway then provides an indication of the result back tothe merchant in step 570 and to the customer in step 580. Returning toFIG. 3, the merchant obtains in step 360 the transaction result via themerchant device. If the transaction result indicates the payment wassuccessfully processed, this confirms to the merchant that thetransaction has been completed and the customer can be allowed to takepossession of the items. The transaction result in such case may be inthe form of, or supplemented by, an electronic receipt that the merchantdevice can store and potentially print for the customer. If thetransaction result indicates the payment was not successfully processed,this alerts the merchant that the purchase transaction is not complete,that alternative payment means may be required or may already be soughtby the customer or otherwise the transaction cannot be completed.

Similarly, returning to FIG. 4, the customer obtains in step 490 thetransaction result via the merchant device and, where the transactionresult indicates the payment was successful, confirms that thetransaction has been completed. The transaction result may be providedto the customer in similar or different form than to the merchant butis, for example, an electronic receipt that the customer device canstore and the customer may revisit at a later time via the walletapplication. If the transaction result indicates the payment was notsuccessfully processed, the customer device informs the customer and mayobtain alternative means of payment on the instruction of the customer.For example, the wallet application 155 may notify the customer thatanother form of payment is required and obtain selection of that form ofpayment such that the payment gateway 130 will attempt to process thepurchase transaction with a different payment account, and the remainingpart of the process may be repeated in similar fashion.

It should be appreciated that a purchase transaction system has beendescribed which employs beacon technology to enable a customer mobiledevice to effectuate a purchase transaction without requiring thecustomer to present a conventional credit card or to tap or wave thecustomer mobile device over a reader. As a result, the customer can payfor items purchased, select payment options, receive discounts and soforth simply by approaching a point of sale and, optionally asappropriate, performing other functions to aid and improve thetransaction such as by providing a payment type selection or assent topay via the mobile device.

In the foregoing specification, it should be appreciated that theparticular implementations shown and described herein are illustrativeof the invention and are not intended to otherwise limit the scope ofthe present invention in any way. Indeed, for the sake of brevity,conventional data networking, application development and otherfunctional aspects of the systems (and components of the individualoperating components of the systems) may not be described in detailherein. It should be noted that many alternative or additionalfunctional relationships or physical connections might be present in apractical system.

The present invention may be described herein in terms of functionalblock components, optional selections and/or various processing steps.It should be appreciated that, unless otherwise stated or morespecifically described herein, such functional blocks may be realized byany number of hardware and/or software components suitably configured toperform the specified functions. Furthermore, any databases, systems,devices, servers or other components of the present invention mayconsist of any combination thereof at a single location or at multiplelocations, wherein each database or system includes any of varioussuitable security features, such as firewalls, access codes, encryption,decryption, compression, decompression, and/or the like.

Any system components discussed herein which involve the storage,access, reference, comparison, match or retrieval of data or similarfunctions, unless otherwise stated or more specifically defined, may beimplemented with any appropriate system, including any type of database,such as relational, hierarchical, graphical, object-oriented, and/orother database configurations. Similarly, processing steps involving theperformance of such functions may likewise be performed with any suchappropriate system.

Unless otherwise stated or more specifically defined, the presentinvention may employ any number of conventional techniques for datatransmission, messaging, data processing, network control, and/or thelike. One skilled in the art will appreciate that, unless otherwisestated or more specifically described herein, a network may include anysystem for exchanging data or transacting business, such as theInternet, an intranet, an extranet, WAN, LAN, satellite communications,cellular network, and/or the like.

It should also be appreciated that any number of available securitymeasures may be applied as appropriate to protect information at allstages of the purchase transaction including, but not limited toencryption, password or PIN number protection, speaker recognition andany biometric applications appropriate to secure and facilitate thefunctions described herein such as facial recognition, fingerprintdetection, retinal scanning and so on.

The invention has been described with reference to specific embodiments.However, it may be appreciated that various modifications and changesmay be made without departing from the scope of the present invention.The specification and figures are to he regarded in an illustrativemanner, rather than a restrictive one, and all such modifications areintended to be included within the scope of present invention.Accordingly, the scope of the invention should be determined by theappended claims and their legal equivalents, rather than by the examplesgiven above. For example, the steps recited in any of the method orprocess claims may be executed in any order and are not limited to theorder presented.

Benefits, other advantages, and solutions to problems have beendescribed above with regard to specific embodiments. However, thebenefits, advantages, solutions to problems, and any element(s) that maycause any benefit, advantage, or solution to occur or become morepronounced are not to be construed as critical, required, or essentialfeatures or elements of any or all the claims. As used herein, the terms“comprises”, “comprising”, or any other variation thereof, are intendedto cover a non-exclusive inclusion, such that a process, method,article, or apparatus that comprises a list of elements does not includeonly those elements but may include other elements not expressly listedor inherent to such process, method, article, or apparatus. Further, noelement described herein is required for the practice of the inventionunless expressly described as “essential” or “critical.”

1. A customer mobile device for processing a purchase transactionbetween a merchant and a customer, the customer mobile devicecomprising: means for receiving a beacon signal containing a transactionidentifier from a merchant device that obtains item information andsends transaction information based on the item information to a paymentgateway; means for sending payment account information and thetransaction identifier to the payment gateway for application of thetransaction identifier to access the transaction information receivedfrom the merchant device; means for receiving, from the payment gateway,purchase information based on the transaction information accessed;means for providing the purchase information to the customer; means forobtaining an indication of assent to pay for the item; and means forsending, to the payment gateway, a confirmation of customer assent basedon the indication obtained from the customer, the confirmation ofcustomer assent enabling the payment gateway to process the purchasetransaction based on the payment account information.
 2. The customermobile device of claim 1 wherein the transaction identifier comprises atleast one of: a merchant identification number, a terminalidentification number, or a device identification number.
 3. Thecustomer mobile device of claim 1 wherein the customer mobile devicecomprises means for obtaining a payment type selection from thecustomer, the payment account information thereafter corresponding to apayment account indicated by the payment type selection.
 4. The customermobile device of claim 1 wherein the customer mobile device isconfigured with a wallet software application comprising at least oneof: the means for providing the purchase information, the means forobtaining the assent to pay, or the means for obtaining the payment typeselection.
 5. The customer mobile device of claim 1 wherein the meansfor receiving the beacon signal is configured to recognize beaconsignals only from within a predetermined range of proximity.
 6. Thecustomer mobile device of claim 1 wherein the means for receiving thebeacon signal is configured to recognize only beacon signals having apredetermined level of signal strength.
 7. The customer mobile device ofclaim 1, further comprising means for obtaining a transaction resultfrom the payment gateway after the payment gateway processes thepurchase transaction.
 8. The customer mobile device of claim 7, furthercomprising means for providing the customer with a receipt for thepurchase upon obtaining the transaction result.
 9. The customer mobiledevice of claim 1, further comprising means for sending a customeridentifier to the payment gateway for use in accessing additionalpayment account information.
 10. The customer mobile device of claim 1,further comprising means for sending a customer identifier to thepayment gateway for use in determining whether the customer is entitledto a discount applicable to the purchase transaction.
 11. The customermobile device of claim 1, further comprising: means for determining,based on the purchase information, whether a purchase amount surpasses apredetermined threshold; and means for automatically providing theindication of assent to pay when the purchase amount does not surpassthe predetermined threshold, wherein the means for obtaining theindication of assent to pay obtains the indication of assent from thecustomer only if the purchase amount surpasses the predeterminedthreshold.
 12. The customer mobile device of claim 1, furthercomprising: means for determining, based on at least one of the purchaseinformation or the transaction identifier, whether the purchasetransaction involves a previously designated merchant; and means forautomatically providing the indication of assent to pay when thepurchase transaction is determined to involve the previously designatedmerchant, wherein the means for obtaining the indication of assent topay obtains the indication of assent from the customer only if thepurchase transaction is determined not to involve the previouslydesignated merchant.
 13. A method for processing a purchase transactionbetween a merchant and a customer, the method performed by a customermobile device and comprising: receiving a beacon signal containing atransaction identifier from a merchant device that obtains iteminformation and sends transaction information based on the iteminformation to a payment gateway; sending payment account informationand the transaction identifier to the payment gateway for application ofthe transaction identifier to access the transaction informationreceived from the merchant device; receiving, from the payment gateway,purchase information based on the transaction information accessed;providing the purchase information to the customer and obtaining anindication of assent to pay for the item; and sending, to the paymentgateway, a confirmation of customer assent based on the indication ofassent, the confirmation of customer assent enabling the payment gatewayto process the purchase transaction based on the payment accountinformation.
 14. The method of claim 13 wherein the transactionidentifier comprises at least one of: a merchant identification number,a terminal identification number, or a device identification number. 15.The method of claim 13, further comprising launching, upon receiving thebeacon signal, a wallet software application that provides the purchaseinformation to the customer and obtains the indication of customerassent to pay for the item.
 16. The method of claim 13, furthercomprising obtaining a payment type selection from the customer, thepayment account information corresponding to a payment account indicatedby the payment selection.
 17. The method of claim 13 wherein thereceiving the beacon signal comprises recognizing beacon signals onlyfrom within a predetermined range of proximity.
 18. The method of claim13 wherein the receiving the beacon signal comprises recognizing onlybeacon signals having a predetermined level of signal strength.
 19. Themethod of claim 13, further comprising obtaining a transaction resultfrom the payment gateway after the payment gateway processes thepurchase transaction.
 20. The method of claim 19, further comprisingproviding the customer with a receipt for the purchase upon obtainingthe transaction result.
 21. The method of claim 13, further comprisingsending a customer identifier to the payment gateway for use inaccessing additional payment account information.
 22. The method ofclaim 13, further comprising sending a customer identifier to thepayment gateway for use in determining whether the customer is entitledto a discount applicable to the purchase transaction.
 23. The method ofclaim 13, further comprising: determining, based on the purchaseinformation, whether a purchase amount surpasses a predeterminedthreshold; and automatically providing the indication of assent to paywhen the purchase amount does not surpass the predetermined threshold,wherein the obtaining the indication of assent to pay comprisesobtaining the indication of assent from the customer only if thepurchase amount surpasses the predetermined threshold.
 24. The method ofclaim 13, further comprising: determining, based on at least one of thepurchase information or the transaction identifier, whether the purchasetransaction involves a previously designated merchant; and automaticallyproviding the indication of assent to pay when the purchase transactionis determined to involve the previously designated merchant, wherein theobtaining the indication of assent to pay comprises obtaining theindication of assent from the customer only if the purchase transactionis determined not to involve the previously designated merchant.